Retirement
Florida Retirement System
General employees participate in the Florida Retirement System (FRS). FRS provides two plans:
- Pension Plan - A Defined Plan
Employees are eligible to retire at age 65 with full benefits, provided they have completed a minimum of 8 years of covered service, or at any age with 33 years of covered service. An employee with 8 or more years of covered service may elect to retire prior to age 65, but with reduced benefits. Investment Plan - A Defined Contribution Plan
Contributions are deposited into an individual account. Vesting occurs after 1 year of service. The employee decides how the funds are invested. This plan would appeal to mobile employees.
Participation and a 3% employee contribution of salary on a pre-tax basis are mandatory. The city contributes the majority of the required cost.
Deferred Compensation
Employees who wish to contribute to a supplemental retirement program are encouraged to join one of the city's Deferred Compensation Plans.
Section 457 of the Internal Revenue Code allows employees to defer a certain portion of their income and invest that deferred income to provide them additional financial security at retirement. Income that is deferred reduces the current tax obligation, and the earnings on the investments also remain tax free until withdrawal.
Daytona Beach Police and Fire Pension
This plan provides retirement benefits to all full time, certified Police and Fire personnel. Membership in this plan is mandatory and members must contribute a percentage of their base pay through payroll deduction on a pre-tax basis. The city also contributes to the plan based upon periodic actuarial valuation.
Employees are eligible for retirement upon the attainment of age 55 and the completion of 10 years of credited service or the completion of 20 years of credited service regardless of age. Service connected death and disability benefits are also provided.